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WESTMINSTER, Colo. - ARCA biopharma, Inc. (NASDAQ: ABIO), a company focused on developing targeted therapies for cardiovascular diseases, has declared a special cash dividend of $1.59 per share in connection with its upcoming merger with Oruka Therapeutics, Inc. The dividend is contingent on ARCA stockholder approval of the merger, which will be voted on at a special meeting scheduled for 9:00 a.m. MT on Thursday.
The payment, estimated to be $1.59 per share of ARCA's common stock, will be distributed to stockholders of record as of August 26, 2024, with a payment date set for August 28, 2024. The exact amount of the special dividend will be determined based on ARCA's net cash exceeding $5 million prior to the merger's closing, and the actual distribution could vary from the estimate.
The merger with Oruka Therapeutics, a company developing novel biologics for the treatment of chronic skin diseases, is expected to close on August 29, 2024, assuming stockholder approval and satisfaction of all conditions under the merger agreement.
This strategic move aligns with ARCA's precision medicine approach to drug development and Oruka's mission to provide innovative treatments for conditions like plaque psoriasis. The proposed merger is anticipated to enhance the combined company's capabilities and resources.
Stockholders who need assistance voting their shares or have questions regarding the special meeting can contact ARCA's proxy solicitor, Innisfree M&A Incorporated.
The information in this article is based on a press release statement from ARCA biopharma, Inc.
In other recent news, ARCA biopharma, a company specializing in diagnostic substances, has announced an amendment to its Subscription Agreement with Oruka Therapeutics. This amendment, which corrects a clerical error in the definition of "Purchase Price" within the original Subscription Agreement, was executed in conjunction with the Agreement and Plan of Merger and Reorganization between ARCA biopharma, Atlas (NYSE:ATCO) Merger Sub Corp., Atlas Merger Sub II LLC, and Oruka Therapeutics. Following this amendment, the parties entered into an Amended and Restated Subscription Agreement which amends and restates the original Subscription Agreement in its entirety. The updated agreement includes provisions for the issuance of warrants to certain employees and service providers of Oruka. This is a part of the ongoing merger process between ARCA biopharma and Oruka Therapeutics, a move that has been in the works since April. The details of the amendment and the Amended and Restated Subscription Agreement were disclosed in exhibits filed with the SEC, but certain details remain confidential as the company has requested confidential treatment for some parts of the exhibits. These are the latest developments in the merger process between the two companies.
InvestingPro Insights
As ARCA biopharma (NASDAQ: ABIO) prepares for a critical merger vote and offers a special dividend to shareholders, the company's financial health and market performance come under scrutiny. According to InvestingPro data, ARCA biopharma's market capitalization stands at approximately $42.94 million, reflecting the company's current valuation within the biotech industry.
InvestingPro Tips indicate that ARCA biopharma holds more cash than debt on its balance sheet, which may provide a level of financial stability as it enters the merger with Oruka Therapeutics. This is a positive sign for investors, showing that the company has a solid liquidity position. Additionally, ARCA's liquid assets exceed its short-term obligations, further highlighting the company's ability to cover immediate liabilities.
On the performance front, ARCA biopharma has experienced a notable price uptick over the last six months, with a 71.86% return, and year-to-date, the return stands at 68.82%. However, the short-term picture shows a different trend, with the stock having fared poorly over the last month, reflected by a -19.15% return. This volatility may be associated with market reactions to the upcoming merger and dividend announcement.
For investors seeking a deeper analysis of ARCA biopharma's financials and market performance, there are additional InvestingPro Tips available at InvestingPro. These can provide further insights into factors such as gross profit margins and profitability, which are crucial for making informed investment decisions.
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